Nick Snow
Washington Editor

WASHINGTON, DC, May 16 -- The US Federal Energy Regulatory Commission has ordered a hearing to determine whether Energy Transfer Partners and three of its affiliates manipulated a market in violation of the commission's rules.

The commission also established a hearing to determine if Oasis Pipeline and two of its affiliates violated regulations governing service under Section 311 of the Natural Gas Policy Act (NGPA).

ETP and the affiliates (Energy Transfer Co., ETC Marketing Ltd., and Houston Pipeline Co.) allegedly manipulated wholesale gas prices between December 2003 and December 2005 to benefit ETP's financial position and other physical positions, FERC said in a May 15 announcement.

It said it ordered a hearing before one of its administrative law judges because there are material facts in dispute that cannot be resolved on the basis of written submissions by the commission's enforcement staff and ETP.